Hospitality Insurance Group Action (HIGA) forms

A new hospitality sector-wide action group has been established to hold insurance companies to account for policy pay-outs arising from lockdown and Covid-19-related losses.

Hospitality Insurance Group Action (HIGA) is open to businesses that have been forced to close within the sector, including hotels, restaurants, bars, pubs, nightclubs and leisure businesses, if their insurance company is silent or refusing to honour policies relating to business interruption due to the pandemic and lockdown.

Litigation law firm Mishcon de Reya LLP (Mishcon) has agreed to advise HIGA on the parameters of bringing a collective group action against a range of insurers. Mishcon has secured external funding to cover the policy review exercise and is working with Philip Edey QC of Twenty Essex Chambers.

There is no cost for UK hospitality businesses to register with HIGA to have their existing business interruption insurance policy reviewed by Mishcon.

Sonia Campbell, partner and head of the insurance disputes team at Mishcon, said: “Hospitality sector businesses, large and small, have been particularly hard hit by the Government-enforced closure during this pandemic and desperately need to mitigate their losses.

“In times of crisis they expect their insurance to respond, yet I am hearing time and time again that insurers are either stone-walling, unfairly limiting or simply point-blank refusing to pay out under business interruption policies.

“This strikes us as something that is open to challenge. I look forward to assisting all members of HIGA in exploring the possibility of a group claim. There may well be some light at the end of this industry’s very dark tunnel.”

To express interest in joining HIGA, business owners should register their details at so that a free-of-charge preliminary assessment can made of their insurance policy and specifically whether Covid-19 lockdown-related losses are covered within their business interruption clauses.

HIGA registrant Trevor Ayling, owner of five Renoufs Cheese and Wine Bars in Dorset and Hampshire, said: “In light of the difficult circumstances, we decided to claim on our insurance policy and have tried every way to get our insurer to respond – to no avail.

“A pay-out on our policy would go some way to making reopening a reality, helping to secure Renoufs’ future.

“We are aware others are similarly affected and, like us, don’t have the money to fight when claims are ignored or denied, as legal support can run into hundreds of thousands.

“We jumped at being an early participant in what has become HIGA. It meant we got our policy wording reviewed for free and the chance of fighting to recover at least a proportion of our losses.

“I will be urging others in the hospitality industry to look at HIGA. We need to stand united to be counted.”

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